Trade openness and economic growth: a causality test in panel perspective
Openness to trade has been one of the primary drivers stimulating growth.The goal of this particular study is to investigate the relationship between trade openness and economic growth in 87 selected countries which includes both Organizations for Economic Co-operation and Development (OECD) a...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Universiti Malaysia Sarawak
2016
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| Online Access: | http://psasir.upm.edu.my/id/eprint/53150/ http://psasir.upm.edu.my/id/eprint/53150/1/Trade%20openness%20and%20economic%20growth%20a%20causality%20test%20in%20panel%20perspective.pdf |
| _version_ | 1848852215570104320 |
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| author | Idris, Jamilah Yusop, Zulkornain Habibullah, Muzafar Shah |
| author_facet | Idris, Jamilah Yusop, Zulkornain Habibullah, Muzafar Shah |
| author_sort | Idris, Jamilah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Openness to trade has been one of the primary drivers stimulating growth.The goal of this particular study is to investigate the relationship between trade openness and economic growth in 87 selected countries which includes
both Organizations for Economic Co-operation and Development
(OECD) and developing countries for 1977–2011 periods.We used two measures of trade openness i.e. the ratio of trade openness (TO) typically spoke by exports plus imports in
nominal value divided by GDP (nominal)which is commonly used in the literature,and trade openness in real(RO)which is defined as the sum of imports and exports in US$ relative to GDP in purchasing power parity US$ (real GDP). An empirical studywas conducted to determine the causal relationship between trade openness and growth in a panel perspective.We
used a dynamic panel data estimation method i.e. the general method of moments(GMM). The empirical results reveal a bidirectional causal relationship for both developing and OECD countries.Our finding is consistent with the endogenous
theory that increased openness leads to higher growth, which thus prompts expanded openness. |
| first_indexed | 2025-11-15T10:34:32Z |
| format | Article |
| id | upm-53150 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:34:32Z |
| publishDate | 2016 |
| publisher | Universiti Malaysia Sarawak |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-531502017-10-30T08:51:05Z http://psasir.upm.edu.my/id/eprint/53150/ Trade openness and economic growth: a causality test in panel perspective Idris, Jamilah Yusop, Zulkornain Habibullah, Muzafar Shah Openness to trade has been one of the primary drivers stimulating growth.The goal of this particular study is to investigate the relationship between trade openness and economic growth in 87 selected countries which includes both Organizations for Economic Co-operation and Development (OECD) and developing countries for 1977–2011 periods.We used two measures of trade openness i.e. the ratio of trade openness (TO) typically spoke by exports plus imports in nominal value divided by GDP (nominal)which is commonly used in the literature,and trade openness in real(RO)which is defined as the sum of imports and exports in US$ relative to GDP in purchasing power parity US$ (real GDP). An empirical studywas conducted to determine the causal relationship between trade openness and growth in a panel perspective.We used a dynamic panel data estimation method i.e. the general method of moments(GMM). The empirical results reveal a bidirectional causal relationship for both developing and OECD countries.Our finding is consistent with the endogenous theory that increased openness leads to higher growth, which thus prompts expanded openness. Universiti Malaysia Sarawak 2016 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/53150/1/Trade%20openness%20and%20economic%20growth%20a%20causality%20test%20in%20panel%20perspective.pdf Idris, Jamilah and Yusop, Zulkornain and Habibullah, Muzafar Shah (2016) Trade openness and economic growth: a causality test in panel perspective. International Journal of Business and Society, 17 (2). pp. 281-290. ISSN 1511-6670 http://www.feb.unimas.my/index.php?option=com_content&task=section&id=10&Itemid=51 |
| spellingShingle | Idris, Jamilah Yusop, Zulkornain Habibullah, Muzafar Shah Trade openness and economic growth: a causality test in panel perspective |
| title | Trade openness and economic growth: a causality test in panel perspective |
| title_full | Trade openness and economic growth: a causality test in panel perspective |
| title_fullStr | Trade openness and economic growth: a causality test in panel perspective |
| title_full_unstemmed | Trade openness and economic growth: a causality test in panel perspective |
| title_short | Trade openness and economic growth: a causality test in panel perspective |
| title_sort | trade openness and economic growth: a causality test in panel perspective |
| url | http://psasir.upm.edu.my/id/eprint/53150/ http://psasir.upm.edu.my/id/eprint/53150/ http://psasir.upm.edu.my/id/eprint/53150/1/Trade%20openness%20and%20economic%20growth%20a%20causality%20test%20in%20panel%20perspective.pdf |